Europe close: Stocks mixed as US-Russia talks end without progress
By Josh White
Date: Wednesday 03 Dec 2025
(Sharecast News) - European equities closed mixed on Wednesday as high-stakes talks between US and Russian officials ended without progress on a potential Ukraine peace deal, tempering gains driven by upbeat economic data and corporate moves.
The Stoxx 600 edged up 0.1% to 576.22, supported by modest advances in Paris, while Frankfurt and London slipped.
The DAX dipped 0.07% to 23,693.71 and the FTSE 100 fell 0.1% to 9,692.07.
France's CAC 40 added 0.16% to finish at 8,087.42.
Patrick Munnelly at TickMill said the FTSE 100 "edged slightly lower on Wednesday as declines in financial stocks overshadowed gains in the mining and energy sectors," adding that the index's move marked "the third consecutive session of losses."
Markets were unsettled by geopolitical developments after Kremlin aide Yuri Ushakov said that five hours of negotiations involving US envoy Steve Witkoff and Jared Kushner left Moscow and Washington "neither further nor closer to resolving the crisis in Ukraine. There is a lot of work to be done."
His comments came shortly after Russian president Vladimir Putin issued threats signalling readiness for conflict with Europe, adding to investor caution.
Munnelly noted that energy stocks climbed "as geopolitical tensions flared, with Russia reporting unsuccessful talks with US officials in Moscow regarding a potential Ukraine peace deal."
Business activity expands in eurozone, UK services growth slows
Economic data offered a counterweight, as business activity in the eurozone expanded at its fastest pace in two-and-a-half years in November, according to HCOB.
The composite purchasing managers' index (PMI) rose to 52.8 from 52.5, driven by a strengthening services sector, which climbed to 53.6.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said the sector's recovery was widespread and strong enough to offset manufacturing weakness, adding that Germany's fiscal stimulus and Spain's solid growth should provide support next year, even as political fragility weighs on France and Italy relies on EU funding.
Patrick Munnelly said disinflation in the eurozone "has slowed," noting that headline CPI rose slightly to 2.2% year on year while core prices held steady, and warned that "rising services prices, supported by strong labor conditions, may prompt hawkish scrutiny" from policymakers.
UK services growth slowed, with the S&P Global PMI slipping to 51.3 from 52.3 as firms delayed decisions ahead of the Budget.
Tim Moore at S&P Global said demand weakened across domestic and export markets, noting "fragile client confidence" and pressure on margins despite rising input costs.
Munnelly pointed out that UK investors are keeping a close watch on the upcoming Federal Reserve decision, adding that Rachel Reeves' Budget had "maintained stability, but concerns over its sustainability persist" and that the UK market still suffers from "limited investor confidence across various asset classes."
Meanwhile, China's services sector expanded at its slowest rate in five months, with the RatingDog PMI easing to 52.1.
Analysts flagged diverging demand trends, falling expectations and continued pressure on profit margins despite an improvement in export orders.
Inditex jumps on sales rise, Hugo Boss in the red
In equities, Inditex surged 8.86% after the Zara owner reported an 8.4% year-on-year rise in quarterly sales and strong demand for winter collections.
Stellantis jumped 7.7% after UBS upgraded the stock, citing expectations of a US market share recovery and potential benefits from looser emissions rules.
Drax Group gained 4.39% after advancing its share buyback programme, while Airbus rose 4% despite cutting deliveries to 790 aircraft this year due to supplier issues.
Dan Coatsworth at AJ Bell said "miners did their best to prop up the FTSE 100, but opposing forces from the banking, pharma and utility sectors were too great to keep the index in positive territory," highlighting that weakness in financials and utilities capped gains from commodity-linked shares.
Smiths Group edged 1.05% higher after confirming the £2bn sale of its Smiths Detection unit to CVC Capital, continuing its divestment programme.
Coatsworth said Smiths had "made the next step in its transition away from a conglomerate structure," adding that the deal should please shareholders "particularly as they are in line for a cash payout," and that the sharper focus on engineering had already driven a significant rerating of the shares.
Patrick Munnelly also noted the stock rose after announcing a deal to sell its baggage-screening division, which "further bolstered optimism in certain corners of the market."
On the downside, Hugo Boss tumbled 9.86% after warning of falling sales during a strategic overhaul aimed at restoring profitability.
Reporting by Josh White for Sharecast.com.
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